At a minimum, an employment contract, in a rudimentary sense can exist from day one of an employee starting work.
This is because an employment contract can be implied, verbal or indeed written.
Regardless of whether a written contract is issued, all employers are legally obligated to supply a written statement of the terms and conditions of employment within two months of an employee starting work.
It is imperative for all employers to abide by this minimum standard otherwise they leave themselves exposed should a dispute occur with their employee.
This written statement does not, however, constitute an employment contract, which as mentioned can be conveyed in numerous ways and numerous places, and is equally binding whether verbal, implied , or written.
Written Employment Contracts Make Sense
But for employers who want to minimise their risks it makes practical business sense to err on the side of caution and always provide a written employment contract.
Especially, as there may be aspects of an employee’s role unique to that position, which can’t be covered through the statement of terms and conditions.
This principal statement focuses solely on statutory requirements such as the name of the employer and employee party to the agreement, the job title and description of work, the date of employment starting, the level and intervals of pay, the hours of work, the entitlement to holidays, and the address of the place of work.
Clearly, this minimum requirement may not be enough to cover many pertinent aspects of an employee’s position.
Risks
Yet without a written employment contract, an employer is exposed should a dispute arise over these pertinent aspects.
But there’s no need to cover implied aspects in employment contracts, such as an employee not committing theft of property. Nor is there need to commit to paper what has become company custom such as enhanced redundancy payments, or aspects already covered by law such as a right to a minimum wage.
Instead, it is more particular aspects such as a restrictive clause whereby a manager cannot find employment with a competitor within an agreed term after leaving work.
It is entirely down to an employer to map out what they need from an employment contract, as long as they stay within statutory requirements.
But, it is always best practice to back up these ‘wants’ in writing, preferably re-inforcing them also through a staff handbook.
That way an employer considerably reduces their own risk from costly pay-outs after losing disputes, and an employee will also have a clear reference guide to all aspects of their employment.